The concept of asymmetric warfare is as old as warfare itself. The basic idea is that when you have a conflict between two entities of significant disparity in military power, the weaker player will attempt to exploit the weaknesses of the stronger entity, even if they aren’t of a military nature.

Today, we’re seeing asymmetric warfare play out by the book in Russia. As recently as last week, Putin advisor Sergey Glazyev stated the need for an anti-dollar alliance to counter perceived American aggression around the globe.

It is no secret that the United States is still the premier military superpower in the world. However, she is not without significant weaknesses; and the value of the USD is one of them.

As America continues its deficit spending, the world is now wondering whether the United States has the will or the economic capability to pay off the close-to twenty trillion dollars she owes in sovereign debt. America has no economic cushion to sustain further costly international military adventures around the world. What better way for others to damage our warfighting capability than to make it harder to finance these global conflicts by damaging the status and value of the United States dollar itself?

The weakening of the USD could cause inflation to spike domestically and ensure our leaders focus on the economy rather than sanctions or other measures against our Russian friends. You can be sure that other players on the geopolitical chessboard are watching what is going on as well. As the Islamic State of Iraq in Syria (ISIS) slowly creates a pan-Middle Eastern Islamic caliphate in front of our eyes, we should be clear that it is the absence of American power and strength that is allowing this to happen.

It is not just foreign adversaries that are seeing the danger in the future. The markets are starting to price in this risk as well. Vince Miller, Senior Market Strategist at Birch Gold Group, had this to say: “As we see more evidence of rising inflation with each passing day, the bond markets are starting to demand a risk premium. And with CNBC recently citing rumblings among many Wall Street analysts that Fed Chair Janet Yellen may only make it through a two-year tenure, we have to ask: Are the markets already losing confidence in her?” If we as a country do not deal with the issue of our overwhelming sovereign debt, the bond market vigilantes will do it for us. Along with inflation, interest rates will spike; and the economic damage across all sections of the U.S. economy will be severe.

But let’s take the concept of an anti-USD alliance even further. Sergey Glazyev stated that Western Europe should want to be part of this alliance as well, as sanctions on Russia will harm other European economies. This statement is obviously self-serving for Russia and not realistic.

Europeans are well aware of the aggressive tendencies of their Russian neighbors and have long memories of the Iron Curtain. However, what if Russia teamed up with China, Iran, and the new Islamic state being formed in the Middle East to try and remove the dollar as a vehicle for trade settlement and as a store of value, basically pulling the reserve currency bid floor out from under the dollar?

There are some who believe the Obama administration is purposefully weakening the dollar through spending and printing money, in order to restrict American power around the world and at the same time provide trillions in excess cash to redistribute wealth as they see fit. Birch Gold’s Vince Miller adds, “Because our nation is so desperate for new sources of cash, some believe the government will reach directly into their personal accounts and confiscate their wealth. But even if they never literally do that, here’s the reality: They’re already accessing savings accounts in a much more subtle fashion; and that’s by devaluing the money we have by printing more of it.” No matter what the agenda of this administration, it is the end result that matters. The future does not look pretty.

There are an array of forces lined up against the U.S. dollar, foreign and domestic. It is highly likely that over the next few years, there will be an alliance of nations that develops to attack the United States’ economic hegemony through our weakness of debt and fiscal irresponsibility. We have dug this fiscal and monetary hole, and we are still digging.

Perhaps it would require another economic calamity like the Great Depression to refresh our memories about the consequences of this type of behavior, which may help to spawn a new group of American leaders to put us back on the path of freedom and economic prosperity. Until then, all bets are off.

This article is brought to you by Birch Gold Group, the precious metals company of choice for those who want to protect their savings with real, tangible gold and silver. To learn more about how physical precious metals can help to safeguard your money, join the conversation at http://www.facebook.com/BirchGold

Comments

Whatever Russia does, America is in a bad road of stumps. Russia with Obama and Holder, there is no winning, except for GOD. I sincerely hope HE soon intervenes before they succeed incomplete ruin for the USA. He is our only hope but a sure one!!

Obama and liberal democrats of this administration should be hung for crimes against USA. Both of Bush's were not true friends of USA. Bush Sr. and his anti-America speech on NEW WORLD ORDER. How many missed that one. We don't have to worry about Russia as we the people will destroy ourselves. We elected these criminals year after year. We are so far in debt that Russia-China-Japan-Germany are laughing as the once great country is falling into pieces that can't be put back together

It's beyond belief that they keep right on with the massive spending, piling mountains of new debt on our backs – it is evil, treasonous and proves they are unfit to lead this nation. We are doomed if we the people do not turn them out of office at the earliest opportunity and instead choose wise and competent leaders who truly care about our nation.